borrowing $ at 5% and loaning it at 7%

[guskayak]

What is the name of your state? MN
My family has a small company and I have put all my personal savings into it because I know its a very safe investment and I can get better than 7% on a very conservative investment. I have a lot of friends who have extra cash and who might be interested in investing if I asked them. Can I legally borrow from them and then invest their money and make us both some extra cash? Say I make one percent and can offer them almost perfect liquidity of their investment. I could also set it up that they invest with the company directly. What do I need to know to do this legally? What is this even called?

 

[HomeGuru]

What is the name of your state? MN
My family has a small company and I have put all my personal savings into it because I know its a very safe investment and I can get better than 7% on a very conservative investment. I have a lot of friends who have extra cash and who might be interested in investing if I asked them. Can I legally borrow from them and then invest their money and make us both some extra cash? Say I make one percent and can offer them almost perfect liquidity of their investment. I could also set it up that they invest with the company directly. What do I need to know to do this legally? What is this even called?

**A: sounds like it may be considered securities.